Buy now & take advantage of the 2010 Machine Tool Tax Savings
"Small Business Jobs And Credit Act of 2010" Increases Section 179 from $250,000 to $500,000 for 2010 & 2011, & also brings back the 50% Bonus Depreciation for 2010
This act increases the amount a taxpayer can write-off up to $500,000 of qualified capital expenditures -- subject to a phase-out once these expenditures exceed $2,000,000 -- for tax years 2010 as well as 2011. It also extends the additional, first-year 50% depreciation for qualifying property purchased and placed in service during the 2010 tax year (as originally enacted within the 2008 Stimulus Bill described above).
NOTE: It does not extend 50% bonus depreciation for tax year 2011. Most equipment that small businesses purchase or lease will qualify for the deduction. Please review the list of equipment that qualifies for the Section 179 Deduction.
For more information, go to http://www.section179.org/section_179_faqs.html.
Extension of Bonus Depreciation
Businesses are allowed to recover the cost of capital expenditures over time according to a depreciation schedule. Congress temporarily allowed businesses to recover the costs of certain capital expenditures made in 2008 and 2009 more quickly than under ordinary depreciation schedules by permitting those businesses to immediately write off 50% of the cost of depreciable property placed in service in those years. This bill extends the additional, first-year 50% depreciation for qualifying property purchased and placed in service in 2010. For more information, go to http://www.depreciationbonus.org.Please consult with your tax advisor to be sure how Section 179 expensing may affect your business.